SEC amendments to enhance the disclosure requirements for alternative trading systems ("ATSs") that trade National Market System ("NMS") stocks were published in the Federal Register. The amendments will be effective on October 9, 2018.
As previously covered, the amendments will impose additional public disclosure requirements on NMS Stock ATSs (including "dark pools") through the new Form ATS-N. The amendments will require an NMS Stock ATS to:
- disclose its manner of operations, broker-dealer operator and the ATS-related activities of the broker-dealer operator and its affiliates;
- post certain Form ATS-N filings publicly on the SEC's website and, if the NMS Stock ATS has a website, a direct URL hyperlink from its website to the SEC's website; and
- publish safeguards and procedures to protect subscribers' confidential trading information.
In addition, the amendments will enable the Commission to declare an NMS Stock ATS's Form ATS-N ineffective after notice and the opportunity for hearing.
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